Form 4: Five9 Grants Restricted Stock Units to Board Member Sagar Gupta

Five9, Inc. granted 11,377 restricted stock units to board member Sagar Gupta, which will vest over time and are held for the benefit of Anson Funds.

Summary

• Five9, Inc. granted a total of 11,377 restricted stock units (RSUs) to Sagar Gupta, a member of the company's board of directors, on December 8, 2024.
• These RSUs are granted in respect of his service on the board.
• Mr. Gupta holds these RSUs for the benefit of Anson Funds, for which Anson Advisors Inc. and Anson Funds Management LP serve as co-investment advisors.
• Each RSU represents a contingent right to receive one share of Five9's common stock.
• 9,416 of the RSUs will vest in three equal installments, with the first vesting on December 8, 2025, and subsequent vestings on each one-year anniversary thereafter, contingent on Mr. Gupta's continued service.
• The remaining 1,961 RSUs will vest in full on December 8, 2025, also contingent on Mr. Gupta's continued service.
• Mr. Gupta does not have any direct economic interest in these securities, as they are held for the benefit of Anson Funds.

Sentiment

Score: 7

Explanation: The document reflects a standard corporate practice of granting equity compensation to board members, which is generally viewed positively. There are no indications of any negative issues.

Positives

• The grant of RSUs aligns the interests of the board member with the company's long-term performance.
• The vesting schedule encourages continued service from the board member.

Risks

• The vesting of the RSUs is contingent on Mr. Gupta's continued service, which could be a risk if he were to leave the board before the vesting dates.

Future Outlook

The RSUs will vest over the next three years, subject to Mr. Gupta's continued service on the board.

Industry Context

Equity compensation, such as RSU grants, is a common practice for publicly traded companies to incentivize and retain board members.

Comparison to Industry Standards

• RSU grants are a standard form of compensation for board members in the technology sector, similar to companies like Zoom, Twilio, and RingCentral.
• The vesting schedule of one-third annually is also a common practice to ensure long-term alignment with the company's goals.

Stakeholder Impact

• The RSU grant aligns the interests of the board member with the long-term success of the company, which is beneficial for shareholders.
• The vesting schedule encourages continued service from the board member, which is beneficial for the company.

Key Dates

Keywords

restricted stock units, RSUs, stock grant, board of directors, Sagar Gupta, Anson Funds, vesting, equity compensation, Five9